Mazda is to establish a small-car production plant in Thailand which will look to eventually bring its operations to North America.

The manufacturer has announced that it will be opening the plant in conjunction with its major shareholder, Ford, and will be seeking to deliver fuel efficient vehicles to consumers, reports the Nihon Keizai Shimbun.

As the US and Europe continues to see a raise in demand for fuel efficient vehicles which will comply with increasingly strict emissions regulations, Mazda is hoping to capitalise on this market and also eventually move its operations into the US.

Ford is aiming to increase its overall small car production and Mazda's new plant will be one of the key suppliers in helping the firm achieve that aim.

It is estimated that the new plant will cost in the region of $429.31 million, which is to be shared by Mazda and Ford.

Ÿ Adfero Ltd